United States: Stable New
York trading as dealers return from Vegas shows. Some optimism for second half
of the year amid positive jewelry retail sentiment. Good demand for 0.70 to 1.99
ct., F-J, VS2-SI2 diamonds. Buyers lacking urgency. Memo houses doing well, as jewelers
are holding less in-house inventory.

Israel: Market quiet, with concern that conditions
will worsen before they get better. Dealers at the JCK show were looking for
buying opportunities but cautious about falling diamond prices. Focus remains
on mid-range American goods. Large stones weak. Thirty companies participating
in Hong Kong show (June 20 to 23), hoping for improvement in Chinese demand.